COE Renewal Price | Results for February 2020
The COE action for the second bid of January 2020 reacted pretty close to what we had anticipated in our COE Renewal Price for February 2020 prediction. We are seeing a softer Cat A which ended weaker and a stronger Cat B which is up by $596. (Update: our March 2020 PQP COE Renewal price prediction is out, click here to read)
The second bid of January 2020 COE bidding results are:
Cat A $35,010
Down by $310
Cat B $37,705
Up by $596
Cat C $25,001
Up by $599
Open Cat $37,500
Down by $500.
So Cat A is down before C-N-WhY?
Yes, Cat A, the category which a lot of PI (parallel importers) have models selling are less able to deliver cars for Chinese New Year on super short notice and in fact we think some of their staff may have gone on holidays before the bidding closed, resulting in less aggressive bidding in this segment on this second COE bid for January 2020.
There are many official distributors still in Cat A but any reduction in the overall bidding numbers was likely to have led to a softer bid.
And the forecast for Cat B is shown to also soften after this peak period before the Chinese New Year of the Rat 2020, with everyone anticipating fewer bids will be submitted in February, but with LTA also cutting number or available COE, we can only wait to see where this will lead and if it will eventually be good for those who have opted to only change cars after the New Year has passed.
But did the latest bid lead to a good February for those who are looking to renew their COE?
COE Renewal Prices February 2020
And as often happens, we will be having customers call us up to ask us “Why?: That’s because down is up and up is now down. Cat A bid went up and COE renewal is down, and vice versa for Cat B, where the bidding went higher and the COE renewal price for Cat B went down. So “Why?”
These are the results for COE renewal cost of February 2020:
Cat A $33,038
Up by $670 compared to the month of January 2020 PQP. A combined of over $1k rise in two months.
Cat B $39,463
Lower by $1392 compared to January 2020 PQP. This is a significant drop following last month’s slight rise.
Cat C $24,884
Down by $518 compared to last month’s COE renewal price, and this has gone below the actual bid price.
Why Does COE Renewal Move In The Opposite Direction to COE Bidding?
That’s easy but many people don’t know why because COE renewal is something they seldom do in their lives.
COE renewal pricing is called PQP and is calculated from the average of the past three months bid prices. Therefore, they are different from the last COE bid prices. So while the bid may move one way, the average can move the other way. We’ve written a little more on this before, you may like to take a look if you want to figure out how to save money on your COE renewal.
It’s not easy to keep track of this unless you want to take out your calculators every bid and see where the trend for COE PQP is heading, but if you want to renew your car in the coming months and would like to know when to do it to your advantage, then using our PQP monitoring service is the best choice for you. This service is free for customers who register with us for their COE renewal, even if months ahead of their actual expiry date. Once they leave the COE PQP monitoring to us, it’s a load off their mind. We update them each month if they should take action or wait, no more stress on how or when!
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